On 1 January 2013, Indonesia prolonged the so-called 'Government Borne Import Duty' regime (according to Regulation 7/PMK.011/2013). Within this regime, the Indonesian Ministry of Finance can reduce/eliminate import duties in 'certain industrial sectors' based on the following criteria:a. to meet the supply of goods and/or services for public interest, consumed by the general public, and/or to protect consumers interest;b. to improve competitive power;c. to increase the absorption of manpower; andd. to increase the State revenue.

The scheme will be in force until the end of 2013.

This regime allows to reduce or eliminate tariffs without significant administrative burdens.

With respect to the predecessor scheme 2012, the new scheme involves even lower administrative burdens.